Implementation of strategic plans is one of the responsibilities of the C- Suite of an organization.
To draw up a strategy is one thing, but to implement it is another. I would like to share some thoughts on the matter with a view of proposing some common things to look out for as overseers and implementers, alike.
Firstly, it is the responsibility of the Board of Directors to implement the strategic plan during the effective period on behalf of the shareowners. The Board delegates this responsibility to the executive management on the understanding that it will be given regular reports on progress and the opportunity to provide intervening guidance and direction in that regard.
The work cut out for the executive management with respect to strategy alignment and implementation depends on the extent of change introduced in the strategic plan. It may call for interventions such as organizational restructuring, operational adjustments, capacity building, business remodeling and so on. This may entail that executive management reverts to the Board for guidance or authority in the process of implementation and in some cases, report the impact of changes in the internal or external environment that may necessitate some adjustments to the initial thinking.
To be successful at implementation, executive management requires to have an effective implementation strategy which involves action plans, assignment of roles and responsibilities and regular monitoring and evaluation among others. This entails drilling down performance to organizational groups and individuals. Formulation of key performance indicators and targets in close proximity with the strategic plan, coupled with the right talent and talent development plan is the beginning of the road to successful implementation of the plan. You know what they say about having the right people to do the job right? It is also important for us to remember that we need to ensure that they are assigned to do the right kind of work. No point in giving an engineer, sitting properly in the production structure line in the organization, a key performance indicator to engage in customer activities to sell the products by designing advertisements when he should be expending his talent to innovate around formulas to increase the performance of the company’s product. Why not give the marketing work to the marketer or an engineer who has demonstrable marketing skills and is better placed in the marketing structure of the organization, rather than torture the production-oriented engineer?
The governing body is expected to take ownership of the strategic direction and objectives of the organization. I am of the view that the governors can only exercise their fiduciary duty towards the organization if they understand the framework within which they would be operating as they exercise their independent judgment as individuals and make decisions as a collective. Consideration of submissions from executive management that border on the strategic direction and objectives of the organization (which the Board has prior agreed to follow), require the Board to assure itself that the proposals before them align with such direction and objectives. This is more so because executive management is expected to operate the affairs of the company within the parameters set in the strategic plan as their number one guide. It informs the way that executive management analyzes issues for onward presentation to the Board for the necessary authority to proceed. Imagine the challenges that would arise in a situation where the governing body introduces parameters that are inconsistent with the strategic plan and premise their decisions on the said inconsistent parameters. This is not only frustrating for the group that the Board has delegated to implement the strategic plan, but also a demonstration of unacceptable governance practice. Having said that, I think that the appropriate action for a Board of governors to take would be to review the strategic plan and introduce the new parameters so that the group it has delegated to implement it is given ample notice of such changes.
As we oversee implementation and undertake it respectively, we are encouraged to give the above some thought.
Thank you!
